Ambuja Cement to Acquire Sanghi Cement in Rs 6,000 Crore Deal

Technical Overview – Nifty 50

The Benchmark index on 02nd August indicated a bearish day in its pre-opening session taking the clues of the global market. The Nifty witnessed a negative opening below 19,700 levels and continues to trade lower with extended selling pressure throughout the day.
Post-recording the day’s low at 19,423.55 levels index rallied smartly by more than 100 points in the final 30 mins of the trade. The prices on the daily chart have taken support near the lower band of the rising channel pattern which acted as an anchor point for the day.
The momentum oscillator RSI (14) has drifted below its trend line support which is placed at 60 levels but managed to hold above 50 levels on the daily time frame. The index has just closed above its 21-day exponential moving average which is placed at 19,550 levels.
Presently the Benchmark index is at make-or-break levels, if prices closed below 19,400 – 19, 350 levels we will be witnessing a bearish breakdown in the index. In prices manages to sustain above 19,500 levels then the immediate upside is likely to be open till 19,750 levels.

Technical Overview – Bank Nifty

The Bank Nifty on the daily chart has witnessed a rising wedge pattern breakdown and the index closed below the lower band of the pattern. Post-recording the day’s low at 44,720.90 levels index rallied smartly by more than 200 points in the final 30 mins of the trade.
The Bank Nifty on the intraday chart has formed a bullish ABCD harmonic pattern and prices are trading above its PRZ (potential reversal zone) levels. The prices on the daily chart closed below their 9 & 21 EMA but manages to find support near their 50 EMA which is placed at 44,646 levels.
The momentum oscillator RSI (14) has drifted below its trend line support which is placed at 50 levels and closed below the same on the daily time frame. The immediate support for the Bank Nifty stands at 44,600 levels and the index is likely to face resistance near 45,500 levels.

Indian markets:

• Domestic equity barometers closed with minor losses on Tuesday.
• The Nifty fell below the 19,750 level after reaching a high of 19,795.60 earlier in the day.
• The market started the day on a positive note but faced profit booking in the early hours, leading to a rangebound trading session.
• Despite the minor losses, the overall sentiment in the market remains positive, thanks to favorable global cues and selective buying in different sectors.
• IT shares were in demand, indicating strong investor interest in the Information Technology sector.
• On the other hand, realty shares witnessed corrections during the trading session.

Global Markets

• The Dow Jones futures were down 104 points, indicating a negative opening in the US stock market today.
• Markets in Europe and Asia tumbled on Wednesday after ratings agency Fitch lowered the United States long-term foreign currency issuer default rating to AA+ from AAA Tuesday night, citing expected fiscal deterioration over the next three years.
• Wall Street stocks ended mostly lower on Tuesday amid a slew of corporate earnings results, while manufacturing sector data supported hopes that the central bank could skip another rate hike in September.

Stocks in Spotlight

• Adani group’s Ambuja Cement is set to acquire Sanghi Cement at an enterprise valuation of Rs 6,000 crore. As part of the deal, the Adani group will invest Rs 4,500 crore to acquire the promoters’ stake and take over the company’s debt of approximately Rs 1,500 crore. The acquisition is expected to be announced soon. Sanghi Cement’s current capacity stands at 6.1 million metric tonnes per annum (mtpa), and this acquisition will aid Ambuja and its subsidiary ACC in reaching their target of 140 mtpa earlier than their initial goal of 2030. Presently, both Ambuja and ACC have a combined capacity of 70 mtpa.
• Godrej Properties‘ shares experienced a 2 percent decline in the afternoon trading session following the company’s report of a sequential decrease in revenue and profit during the June quarter of the current financial year. The quarter-on-quarter net profit dropped by 70 percent to Rs 125 crore, while revenue declined by 32 percent to Rs 1,315 crore. However, on a year-on-year basis, the company showed impressive growth, with profit rising by 174 percent and revenue by 251 percent.
• Hindustan Petroleum Corporation Limited (HPCL) recorded a consolidated net profit of Rs 6,765.5 crore in the first quarter of the financial year 2023-24, thanks to favorable marketing margins. This is a significant turnaround compared to the same period last year when the state-run oil marketing company faced a net loss of Rs 8,557 crore due to soaring crude oil prices. While revenue from the sale of products marginally declined to Rs 1.18 lakh crore in Q1FY24 from Rs 1.21 lakh crore in the same period last year, the company’s improved profitability indicates a positive outlook for the current financial year.

News from the IPO world🌐

• Concord Biotech, backed by Rakesh Jhunjhunwala’s firm sets IPO price band at Rs. 705-741
• SBFC IPO to kick in from Aug 3
• Textile Manufacturer Shri Techtex to roll out IPO

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